Consumer price inflation in France slowed to 1.8% year-on-year in June, down from 2.4% in May, according to data from the national statistics office, Insee.
The decline marks the first time the headline rate has fallen below the European Central Bank's 2% target since March, signaling a notable shift in the price environment for the eurozone's second-largest economy.
The deceleration was primarily driven by falling energy prices, which helped offset persistent pressures in other categories.
This development comes against a backdrop of escalating geopolitical tensions, including the ongoing Iran conflict, which had previously contributed to higher energy costs and inflationary pressures across the region.
The drop in French inflation provides some relief to policymakers and markets, suggesting that the immediate impact of energy shocks may be moderating.
However, the underlying inflationary dynamics remain complex, with core inflation likely still elevated due to service and wage pressures.